Netflix Inc said it agreed to sell $200 million worth of convertible debt to private equity firm Technology Crossover Ventures (TCV).
Shares of Netflix fell 7 percent to $69.55 in extended trade following the announcement.
The notes, which will not bear any interest rate, will be converted to 11.653 shares per $1,000 principal amount upon maturity on December 1, 2018.
At the conversion price, the company will have to issue 2.33 million shares of its common stock to the private equity firm upon maturity. That equates to a per-share price of about $85.81, or a 15 percent premium over the stock's Monday close.
(Reporting by Himank Sharma in Bangalore; Editing by Maju Samuel)